3. Mergers A merger is a transaction that results in the transfer of ownership and control of a corporation.
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8. Conglomerate mergers Consolidated firms may sell related products, share marketing and distribution channels and perhaps production processes; or they may be wholly unrelated. Examples: Cardinal Healthcare-Allegiance; AOL-Time Warner; Phillip Morris-Kraft; Citicorp-Travelers Insurance; Pepsico-Pizza Hut; Proctor & Gamble-Clorox.
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13. Reasons for Making Acquisitions Acquisitions Increase market power Overcome entry barriers Cost of new product development Increase speed to market Increase diversification Reshape firm’s competitive scope Lower risk compared to developing new products Learn and develop new capabilities
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19. M & A PROCESS Pre Acquisition Review Search & Screen Targets Investigate & Value the Target Acquire through Negotiation Post Merger Integration
